Financial And Managerial Accounting
15th Edition
ISBN: 9781337902663
Author: WARREN, Carl S.
Publisher: Cengage Learning,
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Textbook Question
Chapter 3, Problem 4PA
Good Note Company specializes in the repair of music equipment and is owned and operated by Robin Stahl. On June 30, 20Y6, the end of the current year, the accountant for Good Note prepared the following
Instructions
Journalize the seven entries that adjusted the accounts at June 30. None of the accounts were affected by more than one adjusting entry.
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As of Sene 30 1994, the end of the current fiscal year, the accountant for Abay General
Trading completed the worksheet before journalizing and posting the adjustments.
Required: (a) Compare the adjusted and unadjusted trial balances and prepare the eight journal entries that were required to adjust the accounts.
(b) Prepare the journal entries that were required to close temporary accounts.
Abay General Trading
Trial Balance
Sene 30, 1994
Un adjusted
Adjusted
Cash
12,825.00
12,825.00
Supplies
8,950.00
3,635.00
Prepaid rent
19,500.00
1,500.00
Prepaid insurance
3,750.00
1,250.00
Equipment
92,150.00
92,150.00
Accumulated depreciation equipment
53,480.00
66,270.00
Automobile
56,500.00
56,500.00
Accumulated depreciation automobile
28,250.00
36,900.00
Accounts payable
8,310.00
8,730.00
Salary payable
3,400.00…
At the beginning of the year, the balance in the Allowance for Doubtful Accounts is a credit of $559. During the year, $349 of previously written off accounts were reinstated and accounts totaling $837 are written off as uncollectible. The end-of-year balance (before adjustment) in the Allowance for Doubtful Accounts should be the one listed below.
a.$349
b.$71
c.$559
d.$837
Journalize the following adjusting entries on December 31:
A. The Supplies Account balance as of December 31 is $1,200. Actual supplies on hand equals $800.
B. The company uses the allowance method for accounts receivable. A review of the accounts receivable
aging report indicates that $50,000 of the accounts receivable will not be collectible. The allowance
account has a current balance of $30,000.
C. The trial balance indicates unearned revenue of $9,000. The company has determined that $3,000 of
service has still not yet been provided.
D. The company paid an annual insurance premium of $12,000 during the year. Six months of the
insurance has expired.
E. On January 1, the company purchased a delivery truck for 36,000. The company expects to use the
truck for 3 years.
Chapter 3 Solutions
Financial And Managerial Accounting
Ch. 3 - How are revenues and expenses reported on the...Ch. 3 - Is the matching concept related to (A) the cash...Ch. 3 - Why are adjusting entries needed at the end of an...Ch. 3 - What is the difference between adjusting entries...Ch. 3 - Identify the four different categories of...Ch. 3 - If the effect of the debit portion of an adjusting...Ch. 3 - If the effect of the credit portion of an...Ch. 3 - Prob. 8DQCh. 3 - Prob. 9DQCh. 3 - (A) Explain the purpose of the two accounts:...
Ch. 3 - Accounts requiring adjustment Indicate with a Yes...Ch. 3 - Prob. 2BECh. 3 - Adjustment for accrued revenues At the end of the...Ch. 3 - Prob. 4BECh. 3 - Adjustment for unearned revenue On June 1, 20Y2,...Ch. 3 - Adjustment for prepaid expense The prepaid...Ch. 3 - Adjustment for depreciation The estimated amount...Ch. 3 - Effect of omitting adjustments For the year ending...Ch. 3 - Effect of errors on adjusted trial balance For...Ch. 3 - Prob. 10BECh. 3 - Prob. 1ECh. 3 - Classifying adjusting entries The following...Ch. 3 - Adjusting entry for accrued fees At the end of the...Ch. 3 - Effect of omitting adjusting entry Paradise Realty...Ch. 3 - Adjusting entries for accrued salaries Paradise...Ch. 3 - Determining wages paid The wages payable and wages...Ch. 3 - Effect of omitting adjusting entry Accrued...Ch. 3 - Effect of omitting adjusting entry When preparing...Ch. 3 - Adjusting entries for unearned fees The balance in...Ch. 3 - Effect of omitting adjusting entry At the end of...Ch. 3 - Adjusting entry for supplies The balance in the...Ch. 3 - Determining supplies purchased The supplies and...Ch. 3 - Effect of omitting adjusting entry At March 31,...Ch. 3 - Adjusting entries for prepaid insurance The...Ch. 3 - Adjusting entries for prepaid insurance The...Ch. 3 - Adjusting entries for unearned and accrued fees...Ch. 3 - Adjusting entries for prepaid and accrued taxes...Ch. 3 - Adjustment for depreciation The estimated amount...Ch. 3 - Determining fixed assets book value The balance in...Ch. 3 - Prob. 20ECh. 3 - Effects of errors on financial statements For a...Ch. 3 - Effects of errors on financial statements For a...Ch. 3 - Effects of errors on financial statements The...Ch. 3 - Prob. 24ECh. 3 - Prob. 25ECh. 3 - Adjusting entries from trial balances The...Ch. 3 - Adjusting entries from trial balances The...Ch. 3 - Adjusting entries On March 31, the following data...Ch. 3 - Adjusting entries Selected account balances before...Ch. 3 - Adjusting entries Trident Repairs Service, an...Ch. 3 - Adjusting entries Good Note Company specializes in...Ch. 3 - Adjusting entries and adjusted trial balances...Ch. 3 - Prob. 6PACh. 3 - Adjusting entries On May 31, the following data...Ch. 3 - Adjusting entries Selected account balances before...Ch. 3 - Prob. 3PBCh. 3 - Adjusting entries The Signage Company specializes...Ch. 3 - Adjusting entries and adjusted trial balances...Ch. 3 - Adjusting entries and errors At the end of August,...Ch. 3 - The unadjusted trial balance that you prepared for...Ch. 3 - Analyze Amazon.com Amazon.com, Inc. (AMZN) is the...Ch. 3 - Prob. 2MADCh. 3 - Prob. 3MADCh. 3 - Analyze Chipotle Mexican Grill Chipotle Mexican...Ch. 3 - Analyze Nike The following data are taken from...Ch. 3 - Prob. 6MADCh. 3 - Ethics in Action Chris P. Bacon is the chief...Ch. 3 - Prob. 2TIFCh. 3 - Prob. 4TIFCh. 3 - Prob. 5TIF
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